Court Proceedings Commenced

• Proceedings commenced by CEO and Executive Chair against the Company
• Allegations of adverse action and victimisation under workplace laws
• Company denies allegations and will vigorously defend proceedings

Structural Monitoring Systems Plc ('SMS' or 'the Company') has advised that proceedings have been commenced in the Federal Court of Australia by Mr Ross Love (CEO and Executive Chair) and Turton House Group Pty Ltd ('Applicants') against the Company and certain subsidiaries and individuals. The Applicants are seeking, among other things, injunctive relief restraining the termination of their engagement with the Company, compensation and penalties. The proceedings include allegations that the Applicants have been subjected to adverse action in contravention of the Fair Work Act 2009 (Cth) and victimisation under the whistleblower provisions of the Corporations Act 2001 (Cth). Prior to the commencement of the proceedings, the Company engaged an independent third party with expertise in Canadian employment law to conduct a workplace investigation and prepare a report. The Company is currently prohibited from publishing or disseminating the investigation report or any of its findings. The Company denies the allegations made by the Applicants and will vigorously defend the proceedings. The matter will be listed for an interlocutory and final hearing before the Federal Court of Australia in due course. The Company will update the market as required in accordance with its continuous disclosure obligations under ASX Listing Rule 3.1.